The US dollar will be eliminated as the trade currency between CIS countries by a new drafted bill.
Russian President Vladimir Putin plans to use this bill in order to increase the use of national currencies in foreign trade payments and financial services.
This bill would enable the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.
Also, macro-economic stability would be achieved.
The possibility of switching to national currencies has also been discussed within the Eurasian Economic Union (EEU). Based on the agreement between Russia, Belarus, Armenia and Kazakhstan, by 2030, these countries are obliged to switch to settlements in the national currencies. Those currencies include Russian ruble, Belarusian ruble, dram and tenge.
The reliance of EEU on countries using dollars and euros is supported by the fact that 50 percent of turnover is in dollars and euro.
Because China and Russia are trying to restrain the dollar dominance, China has introduced a pilot two-currency program, in order to replace dollar with the ruble.
The agreement to switch the currency from dollar to ruble was signed between the Russian Central Bank and the People’s Bank of China in 2014. Based on this three-year currency swap agreement, which is worth approximately $23.5 billion, the financial cooperation between the two countries will be increased.